After the GST rate of 12% is implemented on mobile phones, prices are expected to rise by 4-5% for existing models across the country, more so in states where value added tax - which will be a component of GST from next month - is presently around 5%.Karan Bajaj | ETTelecom | Updated: June 20, 2017, 13:00 IST

NEW DELHI: Consumers will not see any change in pricing, or discounts, on Motorola brand of smartphones, even as ecommerce channels start offering models at slashed prices before the goods and services tax (GST) regime kicks in from July 1.

After the GST rate of 12% is implemented on mobile phones, prices are expected to rise by 4-5% for existing models across the country, more so in states where value added tax - which will be a component of GST from next month - is presently around 5%.

Sudhin Mathur, Managing Director, Motorola India, said that they will not be offering any discounts on their existing product portfolio, when asked about the impact of GST on the company. "Our current pricing strategy is not impacted by the change in taxes."

"Motorola will be absorbing the increase in tax for each smartphone unit sold," Anuj Sharma, Head of Product Marketing for Motorola, told ET.

With less than a fortnight to go for implementation of GST, several brands and e-commerce websites have started clearance sale across product categories.

Both Flipkart and Amazon are running pre-GST sales and even small vendors in the offline segment are offering discounts for stock clearance. This means that some Motorola devices can go on sale by the partners even if Motorola does not offer an official price drop for its smartphones.

Amongst all this, Motorola has launched their new budget phone, the Moto C Plus today in India at an aggressive price of Rs 6,999. Motorola says that the price for the phone is set keeping in mind the upcoming GST.

Separately, RCom initiated contempt proceedings in the apex court against the Department of Telecommunications, blaming it for delaying a spectrum sale that would have enabled dues to be paid to Ericsson and lenders.